All too often, agents and brokers enterinto producer agreements with insurers without entirelyappreciating the terms to which they are agreeing.(iStock)
Pete Seeger, the legendary American folk singer, offered a greatdistinction between education and experience. “Education,” he said,“is when you read the fine print; experience is what you get whenyou don't.” The point being: it is extraordinarily important forparties to an agreement to review and comprehend its terms, or elsedifficulties may well ensue. But achieving the requisite level ofunderstanding is frequently easier said than done.
This is certainly true in the insurance context. All too often,agents and brokers enter into producer agreements with insurers withoutentirely appreciating the terms to which they are agreeing. Giventhat producer agreements are typically quite comprehensive andcomplex, and most floating around the industry lack any semblanceof standardization, this is not surprising.
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